Offshoring and Outsourcing of R and D and Business Activities in Canadian Technology Firms

A substantial amount of empirical research has been conducted on the offshoring/outsourcing practices of U.S., European, South Korean, and Japanese technology firms. However, there is very little research evidence on the strategies of Canadian firms. This leaves a gap in the literature that we aim t...

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Autores principales: Persaud,Ajax, Floyd,Joseph
Lenguaje:English
Publicado: Universidad Alberto Hurtado. Facultad de Economía y Negocios 2013
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Acceso en línea:http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-27242013000400001
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Sumario:A substantial amount of empirical research has been conducted on the offshoring/outsourcing practices of U.S., European, South Korean, and Japanese technology firms. However, there is very little research evidence on the strategies of Canadian firms. This leaves a gap in the literature that we aim to fulfill by providing empirical evidence of the practice among Canadian manufacturing firms. The evidence presented is based on t he 2009Survey of Innovation and Business Strategy conducted by Statistics Canada. This survey provides the largest and most comprehensive data in Canada on this topic. The data suggest that only a very small proportion of Canadian manufacturing firms offshore/outsource their R&D and other business activities and only a select few countries. The primary motivations for Canadian firms to offshore/outsource their R&D and business activities are to reduce costs and to gain access to new markets. The managerial, policy, and research implications of the results are discussed.